Equity
Joint Venture Program
BCF and required investors will invest up to 90% of
equity capital. The financing
structure may be a combination of equity & debt.
Click below for details:
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Property Type
Capital Structure
Guarantees and Recourse
Exit Fees
Operations
Preferred Returns
Pricing
Processing
Terms
Third Party Reports
Notice
Bridge Loan
Property TypeS
All product types for opportunity buys, value creation (rehabs) and
yield plays. Prefer apartments, office, grocery anchored retail and
industrial for new construction. We prefer 50% +/- pre-leasing
required for new retail construction. Other properties considered on
a case by case basis. |
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Office or mini self-storage -
located in
in-fill or
prime suburban locations. No
Development.
Retail - centers anchored by neighborhood grocery/drug stores or
big box with credit tenants preferred.
Industrial - multi-tenant bulk-warehouse and distribution parks,
office/showroom and
research and development properties.
Multifamily - garden-style built with traditional amenities.
Loan amount $3 million to $50 million per property, and $75 million
in combined debt and equity. Over $100 million available for special
strategic alliances.
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Capital Structure
BCF and or its affiliates will invest 70% - 95% of
equity capital with 70% - 80% loan to value debt. Alternative
financing structures are available if partner's share in upside, or,
residual that can be increased to an amount greater than its initial
capital based on partners added value
to the project.
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Guarantees and Recourse
Personal guarantees may be required for construction loan portion,
bonding required for construction period. There will be typical
carve-outs for permanent debt financing.
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Exit Fees
The fees will be based on a 'look-back' at exit to yield a 14 to 25%
annualized IRR - not including interest. This will result into a 40%
to 60% partner split in the project cash flow. The length of the
investment and available cash flow at exit determines the final
profit split. The exit strategy will be pre-determined for each
project. Fees will range from 4 to 6 points, depending on
transaction size. Par pricing is available under certain
circumstances.
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Operations
The partner will handle day-to-day operating decisions and property
management. All major decisions will include both partner and BCF.
Acquisitions are made on behalf of BCF or its
Affiliates.
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Preferred Returns
9% - 12% on all equity invested.
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Pricing
Flexible pricing with preferred returns, the size of promotion
needed for IRR look-back, equity return preference, and other deal
items vary depending upon the transaction risks and amount of
partners equity.
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Processing
The underwriter may quote within 5 business days of receipt of all
primary property data and can generally issue a final loan
commitment letter, and close within 30 to 90 days.
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Terms
The terms are 1 to 5 years holding period. We prefer 1 to 3 years
hold. There is a 3 to 5 years hold on yield plays and preferred equity.
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Third Party Reports
MAI appraisal, engineering, environmental and a feasibility study
will be required. Our underwriters may require additional reports
for further evaluation. The quality of the developer and the project
is critical for the success of the program.
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Notice
The information furnished to you here is preliminary. This is not an
offer or a loan commitment, all rates, terms, and conditions, are
subject to changed without notice. Commercial transactions are
subject to due diligence submission with a formal application,
underwriting and written approval.
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Bridge Loan
A bridge loan is a loan that is used for a short duration of time (1
month to 5 years) until permanent financing is put in place.
Bridge loans are the perfect solution to timely real estate
acquisitions or business opportunities because they allow a
purchaser or investor to act quickly by using private money sources.
BCF is able to provide funds quickly because along with our investors
we can use their own private capital. Additionally, the loan committee
is comprised of only a few members of the executive team, creating
an expeditious, approval process.
We are not
encumbered by the same prohibitive regulations that most
institutional lenders must follow. Our documentation process
enables us to perform our due diligence and fund loans in within 7
to 20 business days.
We fund bridge loans from $3 million $10 million, nationwide.
The terms of our Bridge Loans range from 30 days to 5 Years.
Our interest rates are 12% to 18%.
Our loan fees vary for each project funded.
Funding can take place within 7 to 20 business days.
Our bridge loans must be secured with real estate as
collateral.
Our loan to value is up to 75%
Individual credit will be taken into consideration
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